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MTD for Income Tax start date

What is the MTD for Income Tax start date for a business with 31 March year end ?

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Forgive me if this question has already been asked, but I'm trying to get my head around when MTD for Income Tax is going to impact on each of my individual clients. 

It states on HMRC's webpages that :

'Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023'.

If a business prepares its annual accounts to 31 March  am I correct to understand from this that the business' first compulsory MTD Income Tax submission will be for the quarter 1 April 2024 to 30 June 2024, but if the business prepares its annual accounts to 5 April its first compulsory MTD Income Tax submission will be for the quarter 6 April 2023 to 5 July 2023  ( a year earlier ) ? 

So, unlike MTD for VAT which became compulsory for all businesses around much the same date, and didn't necessarily start with the first VAT quarter of the business' financial year, am I correct to understand that MTD for Income Tax submissions will only begin from the first quarter of each business' financial year ? 












Replies (2)

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By Geoff56
08th Jul 2021 14:16

Yes, a 31st March year end means the taxpayer is not caught until 1st April 2024. With a 5th April year end, they are caught from 6th April 2023.

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By possep
29th Jul 2021 08:11

If all 05/04 year ends are changed to 31/03/23 are the individuals then not caught until 01/04/24?

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